This story was interesting. A former Goldman Sachs vice president wrote an editorial in the NY Times, citing corruption inside Goldman Sachs.
However, it had no substantial new information. “Goldman Sachs brokers trick customers into making bad trades so that Goldman Sachs can profit.” If you didn’t already know that, you’re an idiot.
That’s one aspect of corruption in the financial industry. A bank/broker is trying to make profitable trades for its own account *AND* manage customers’ money. Those are inherently conflicted. Most people would have trouble managing that conflict, and banksters tend to be pretty unethical.
Here’s some “whistleblower” news that’s *MUCH* more damaging than anything Greg Smith wrote. “As a Primary Dealer, Goldman Sachs makes a practically riskless profit trading Treasury debt.” or “Negative real interest rates are a huge State subsidy for Goldman Sachs.” or “Inflation is theft!” or “Bonds and money market funds are a stupid investment, because you get ripped off by inflation.” or “Jon Corzine stole $1.6B from his customers and got away with it. Many other MF Global executives already found jobs at other banks, including banks who wound up with customer money. Help another bank rob your customers, and then get a nice job as a reward.”
At my last financial industry job, I saw some really suspicious things. Many of those are much more damaging than things Greg Smith wrote. There were suspicious large fail trades. I suspected that some employees were intentionally sabotaging their software, to steal and launder money.
Another disappointing bit is people saying “Nobody else will hire Greg Smith as a vice president now. His career is over.” There’s retaliation for mentioning even a bit of the forbidden truth.
I wonder if the bankster propaganda is playing a deep game? Goldman Sachs is being held out publicly as the pinnacle of bankster corruption. Then, there will be a scandal where Goldman Sachs is ruined. Problem solved! This stuff happens at all big banks, although Goldman Sachs is the biggest abuser. The insiders can leave Goldman Sachs and move to another bank. The important part is the corrupt financial system and the Federal Reserve. Goldman Sachs is just a symptom. Goldman Sachs is the biggest abuser, but the abusers can always leave Goldman Sachs for someplace else.
You know that Greg Smith’s “whistleblower letter” is mostly meaningless, because the NY Times published it. It really didn’t have any new information. People are discussing Greg Smith instead of more important things. A fake whistleblower helps distract attention from bigger crimes.